According to court documents from the ongoing FTC trial over the Activision Blizzard acquisition, Microsoft had expressed interest in acquiring gaming giants such as Sega, Bungie, and Niantic in recent years. The Verge reviewed emails that revealed Xbox chief Phil Spencer had written to Microsoft CEO Satya Nadella and CFO Amy Hood in November 2020, seeking approval to approach Sega Sammy for a potential game studio acquisition. Microsoft is currently attempting to convince the court that its $69 billion deal to acquire Activision Blizzard, the maker of Call of Duty, will benefit the gaming industry. On the other hand, the US Federal Trade Commission (FTC) is actively opposing the deal.
Spencer’s email from 2020 stated, “We believe that Sega has developed a well-balanced portfolio of games with a global appeal in various segments, and acquiring them will help us enhance Xbox Game Pass both on and off-console.” Spencer also noted that dealing with a publicly traded Japanese company like Sega could present some complexities. The company’s presence in the Asian mobile gaming market was another driving factor behind the potential acquisition. The internal merger review document from 2021 revealed Microsoft’s interest in other companies such as Bungie, the creator of Halo and Destiny, and Niantic, the brains behind Pokémon GO.
Earlier rumors from September 2020 had suggested that Microsoft had made multiple attempts to acquire Bungie, but the deals fell through due to the high price. Bungie’s current CEO, Pete Parsons, denied these reports, although there may have been some truth to the high price aspect. Bungie had previously split from Microsoft in 2007 and became an independent company. Last year, Sony Interactive Entertainment (SIE) acquired Bungie. The court documents highlighted Microsoft’s intention to secure the Destiny IP and integrate its live operations infrastructure into Xbox Game Studios, considering the game’s high playtime on Game Pass. Additionally, the documents mentioned Supergiant Games, the developer of Hades, and IO Interactive, the creator of the Hitman reboot.
Recently, Microsoft claimed that the next generation of gaming consoles, specifically the successors to Xbox Series S/X and PlayStation 6, should be released in 2028. Xbox has been arguing for a 10-year agreement that ensures Call of Duty is released on PlayStation consoles in parity with Xbox. However, Sony has yet to respond to this offer, and even if agreed upon, it would exceed the 2028 release window. Despite this, Microsoft has shifted its focus away from competing in the current console wars and instead aims to deliver quality software and expand the reach of Xbox Game Pass.
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Eugen Boglaru is an AI aficionado covering the fascinating and rapidly advancing field of Artificial Intelligence. From machine learning breakthroughs to ethical considerations, Eugen provides readers with a deep dive into the world of AI, demystifying complex concepts and exploring the transformative impact of intelligent technologies.
